Premier Chang Chun-hsiung (
"Seventy percent of their suggestions appear feasible to most government agencies," government spokesman Su Tzen-ping (蘇正平) told a press conference yesterday afternoon after the meeting.
The four major business groups include the Chinese National Association of Industry and Commerce (
Su said attendees, including Vice Premier Lai Ing-jaw (賴英照), Cabinet Secretary-General Chiou I-jen (邱義仁) and other ministers, briefly exchanged views on their economic concerns and the agenda of the upcoming Economic Development Advisory Conference (經發會).
A suggestion by business leaders that the ceiling limit on the central government's outstanding debt be raised was met with doubt by officials. But according to Su there is not a significant difference between the position of the business sector and the government.
The appeal -- designed to create a new source of funds to cover increased expenses for infrastructure construction projects -- would be via the issuance of new government bonds.
The business groups are pushing the plan in the hope it will generate new business opportunities.
Su, however, said after a thorough discussion with financial and economic officials, they do not think it is necessary to elevate the ceiling limit to 25 percent from the current 15 percent.
Su said that if the legislators can agree to exclude the "new government debts raised to repay old debts" from the aggregate amount of the government's outstanding debts, then the central government would have ample room to float new bonds to raise funds.
According to the revised Public Debt Law, total annual debt recorded by the central bank through the issuance of government bonds cannot exceed 15 percent of the annual expenditure budget.
In addition, the business sector also hopes the government will allow Taiwan banks to open complete branches instead of representative offices in China.
The Cabinet announced in early June that it would begin allowing local banks to open representative offices in China to encourage Taiwan businesses to remit their investment proceeds back home.
Su explained that the government hasn't sought to allow a domestic bank to open a branch office in China because of capital outflow concerns.
But according to high-ranking finance ministry officials, the Cabinet will consider allowing Taiwan banks to open branch offices in China, if Beijing allows Taipei to send officials to monitor the banks' performance in China.
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